Pension rule changes - most money ends up in BTL

[BrilloPad]

What are the rules with cashing out your pension pot ?

When I was looking into it, in case I cashed out my German pension I got the impression they tax 75% of it at "full whack".

i.e. you get say 100 grand then 75 grand would be at taxed 20 and 40%

which is a bit steep, considering that the contributions weren't tax free, that means I'm being taxed on taxed income.

My conclusion is if I return to the UK, I should cash it in before I go back.

Just wondering whether in this case it should be regarded as life insurance for which only the gains are taxed.

You pay tax in the UK. But it is tiny compared to the profits to be made from property. So buy now!

[alreadypacked]

What are the rules with cashing out your pension pot ?

When I was looking into it, in case I cashed out my German pension I got the impression they tax 75% of it at "full whack".

i.e. you get say 100 grand then 75 grand would be at taxed 20 and 40%

which is a bit steep, considering that the contributions weren't tax free, that means I'm being taxed on taxed income.

My conclusion is if I return to the UK, I should cash it in before I go back.

Just wondering whether in this case it should be regarded as life insurance for which only the gains are taxed.

Only after you have made 10 years contributions, otherwise you get nothing.

[northernladuk]

YOU CANNOT LOSE!

Hmm where have I heard that before???

[BrilloPad]

Savings rates hit new low, says Bank of England - BBC News

[BrilloPad]

Hmm where have I heard that before???

First timers guide? From your accountant?

The stock market crash of 1987: What have we learned? - BBC News

central bankers could have done more to limit the periods of cheap money and east credit that have fuelled stock market booms.

But its different this time.....

[Danglekt]

I bought two dozen this morning already.

YOU CANNOT LOSE!

https://www.youtube.com/watch?v=6A7bq1HFygs

This is the real trick

[SimonMac]

By passing the whole much is not most grammar differences, the average size of pension taken in full is less than £15k, the summary of the story is "Pension freedom is good" nothing to do with BTL.

[AtW]

Another crazy government action. Maybe we need a rule that says, is someone has blown an adequate pension pot, they will not be eligible for welfare.

Why??? It's their cashpot, they can use it whatever they like - as long as they paid enough NICs to qualify for welfare.

[MrMarkyMark]

FTFY

But its different this time.....as those political "masters", Pig Boy and Gidiot, have managed to find a sustainable workaround.